Guangqi Honda to raise eco-friendly car production capacity in China
TOKYO, NNA – Honda Motor Co. will jack up eco-friendly car production capacity by 170,000 units annually in China in response to growing local demand for hybrid sedans.
Guangqi Honda Automobile Co., its Guangzhou-based manufacturing joint venture, will invest a total of 3.3 billion yuan ($472 million), according to a statement by Guangzhou Automobile Group Co., the equal partner in the local firm.
New production lines will add 120,000 units to annual output and renovation of existing production facilities will bring an additional 50,000 units.
The timeframe of the expansion has not been disclosed.
Hajime Kaneko, a Honda Motor spokesman, declined comment on the current production capacity in China.
But he said Honda’s sales of fuel-efficient cars in China have gradually increased and that the planned output expansion is “significant.”
In 2017, the Japanese automaker sold around 1.46 million units in China, the world’s largest automobile market, about 25,000 units of which were hybrid vehicles. The most popular model in China is the Accord sedan hybrid.